Commissioner Of Income Tax , Ludhiana I, Ludhiana v. Deepak Fastners Limited, Ludhiana

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. ITA No. 521 of 2006 Date of decision: 6.12.2010 Commissioner of Income Tax , Ludhiana I, Ludhiana -----Appellant Vs. Deepak Fastners Limited, Ludhiana ----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOELHON’BLE MR. JUSTICE AJAY KUMAR MITTAL Present:-Mr. Rajesh Katoch, Advocate for the appellant. Mr. Animesh Sharma, Advocate for the respondent. Adarsh Kumar Goel,J. This appeal was admitted to consider following substantialquestion of law raised on behalf of the revenue arising out of orderpassed by the Income Tax Appellate Tribunal Chandigarh Bench ‘A’,Chandigarh in ITA No.636/Chandi/2005 dated 28.4.2006, for theassessment year 2002-03:- “Whether on the facts and law, the Hon’ble Income TaxAppellate Tribunal was correct in holding that theDEPB was an income derived from the Industrialundertaking, ignoring the fact that in whatever form theexport incentive/benefit flowed to the respondentresulting in some extra profit, the source of DEPB wasthe particular scheme of the Government and not thebusiness of industrial undertaking?” We have heard leaner counsel for the parties and perused the record. Learned counsel for the assessee fairly states that the issue is covered against the assessee by judgment of the Hon’ble SupremeCourt in Liberty India v. CIT, (2009) 317 ITR 218. Accordingly, the question is answered in favour of the revenue and against the assessee. The appeal is allowed. (Adarsh Kumar Goel) Judge December 6, 2010‘gs’ (Ajay Kumar Mittal) Judge